Finance
The federal Home Ownership and Equity Protection Act (HOEPA) protects NJ borrowers from:
ALow-interest rates
BPredatory lending practices in high-cost home equity loans and refinances✓ Correct
CNormal origination fees
DAll adjustable-rate mortgages
Explanation
HOEPA provides enhanced disclosures and restrictions on high-cost loans (those with very high APRs or fees) to protect borrowers from predatory lending terms such as excessive fees, balloon payments, and prepayment penalties.
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